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Primary Dealers Credit Facility (PDCF)

Last updated 25th Nov 2022


The term Primary Dealers Credit Facility refers to an overnight loan process made available to primary dealers. The Primary Dealers Credit Facility was established by the Federal Reserve in March 2008 in response to liquidity pressures felt by primary dealers involved in the repurchase agreement market.


A primary dealer can be a securities broker or bank that has applied for, and was granted, the right to trade directly with the New York Federal Reserve as part of its open market operations (OMO), including participation in repurchase operations. In March 2008 the Federal Reserve created the Primary Dealers Credit Facility (PDCF) due to the stress occurring in the financial markets at that time and the tri-party repurchase agreement market specifically.

The PDCF functioned in the same manner as the Discount Window. Loans would settle on the same business day and mature the next business day. Interest rates on the loans were the same as those offered for primary loans through the New York Federal Reserve. Primary dealers were subject to a frequency fee for dealers that accessed the facility for more than 45 days. Collateral for the loans included all eligible tri-party repurchase agreements as of September 12, 2008. The PDCF remained open to primary dealers until February 1, 2010.

Related Terms

primary credit, secondary credit, primary dealer, nonrecourse loan, recourse loan

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